Monday, December 31, 2007

Self-Employment Tax Contribution Base Increases. The maximum amount of self-employment income subject to Social Security taxes will increase, probably to about $102,000 in 2008, up from $97,500 in 2007. (The exact amount was not set at this writing. Check this Web site for updates.) The self-employment tax rate remains 15.3 percent. The full rate applies to the first $102,000 of self-employment income; after that only the 2.9% Medicare tax applies.

Social Security Tax Contribution Base Increases. The maximum amount of wages subject to Social Security tax will increase to about $102,000 in 2008, up from $97,500 in 2007. (The exact amount was not set at this writing. Check this Web site for updates.) The 7.65 percent tax on employers and employees will apply to the first $102,000 or so of wages; after that only the 1.45% Medicare portion of the tax will apply.

Business Standard Mileage Rate Rises. The standard business mileage rate will increase for miles driven in 2008 for business, up from 48.5 cents per mile in 2007. (The exact 2008 rate was not set at this writing. Check this Web site for updates.) Remember that you can deduct the cost of parking and tolls in addition to the mileage allowance.

Tax-free Parking for Employees. Starting in 2008, firms can pay for $220 a month of parking tax free for employees, up $5 per month from 2007. The cap on tax-free transit passes rises to $115 a month, up $5 a month from 2007.

Increased Section 179 Expense Deduction. The maximum amount of equipment placed in service in 2007 that businesses can expense increases to $128,000, a $3,000 increase from 2007. The annual investment limit increases to $510,000 for 2008, up from $500,000 the year before. Thus, you won't begin to lose the benefit of expensing until you place more than $510,000 of assets in service in 2008.

3 comments:

Section 179 is one of the few tax code changes that Congress has enacted that actually serves its purpose. I'm a credit analyst at a national equipment finance company, and we were so extremely busy at the end of year helping small businesses take advantage of section 179 that we created this calculator http://www.crestcapital.com/tax_deduction_calculator to allow cusotmers to compute potential tax savings online.

A new indoor fence solution from Supply Rack.

Supply Rack Indoor Fence System is ideal for concrete floor installation and is a nice upgrade to the standard chain link on posts and plates. Give your customer another option; in many cases this may be the most efficient method to comply with OSHA requirements. Steve Rushing from Supply Rack Sales & Marketing has answered our questions about his product; to read the complete article click RIGHT HERE.

What can I say?

About Me

You have arrived at the Fence Industry's most important website.
Email me at anytime with a fence question or if you have a product you would like the Wizard Team to review: fencewizard@gmail.com. Submit an original article to us about something in the industry and we will post it for the fence world to see and comment on.
Thanks for reading.

Welcome to: THE FENCE WIZARD BLOG.

If you have scrolled down this far..... WHY? OK - OK you might find more content below. BUT -you also risk finding more extremely well targeted advertisements. The Fence Wizard does command you to take a look at some of the affiliate advertising on the page - we only bring you ads that are relevant. Doing so allows the FENCE WIZARD to continue providing "free lunch" to the worlds fence installers and customers. Thank you for visiting the fastest growing Fence related site on the Internet.